The S&P 500 closed out 2024 with a 25% total return, beating its two-year performance since the late ’90s and surpassing its 20-year performance since 2008. However, this year’s gains still fall short of historic highs.
For investors, long-term growth is key. The past decade has seen remarkable returns: $1,000 invested at the beginning of 2015 would be worth $3,425 today, representing a 242% increase over 10 years. Over two decades, that same investment would grow to $7,175.
While these gains are impressive, they’re not unusual. The best 20-year returns were seen in 2000 with over 2,500% growth, and 10-year returns reached 400% in March 2019. Notably, 20-year returns have remained positive, unlike the occasional negative 10-year result.
The US market’s exceptional performance is largely due to a few large tech companies. In contrast, non-US markets, tracked by the MSCI ACWI ex USA index, have seen less impressive gains: 6.1% over one year, 25% over five years, and 68% over 10 years.
Some experts believe that what goes up must go down, but recent trends contradict this notion. Stock strategists at Goldman Sachs expect the good times to be largely over.
Ultimately, while the S&P 500’s long-term performance has been strong, it hasn’t set records in terms of exceptional growth. Valuations may be high, but past performances often precede further increases.
Source: https://www.axios.com/2025/01/02/stock-market-returns-2024